As per AS 26 para 56 In some cases, expenditure is incurred to provide future economic benefits to an enterprise, but no intangible asset or other asset is acquired or created that can be recognized. In these cases, the expenditure is recognized as an expense when it is incurred.
For example, expenditure on
research is always recognized as an expense when it is incurred.
Others include
Expenditure on start-up activities (start-up costs), unless this
expenditure is included in the cost of an item of fixed asset under AS 10.
Start-up costs may consist of preliminary expenses incurred in establishing a legal entity such as legal and secretarial costs.
Expenditure to open a new facility or business (pre-opening costs)
Expenditures for commencing new operations or launching new products or processes (pre-operating costs);
Expenditure on training activities; Expenditure on advertising and promotional activities
Expenditure on relocating or re-organising part or all of an enterprise.
I want to know whether the conclusion drawn below from the above statement is correct or not.
That means issue expenses relating to shares either by a new company or an existing company is to be treated as an expense.As this is an expenditure in the nature of advertising or promotional activity.That means now the concept of deferred revenue expenditure in no more even schedule VI format prescribes for it?
A Company 'a' had started a Plantation for Rubber Trees few years back.
All the Exps. for Plantation were Capitalised.
Now, Rubber Plantation has started and hence, Commercia;l Production of Rubber has Started.
I would like to know the Accounting for such a Company.
Hi,
Can any one tell me when to recognise revenue in case of FOB & CIF export sales ?
Pls reply urgently.
Kinjal Shah
Respected sir
I am accountant in private organization i want to now how make accounts entry for
01. for staff payable and deduction form staff
02.how make payment for pf threw bank
03.how to create bones entry
04,how make payment for bonus
note : bonus should be accounts entry only not cash not affect ,it like provision only not realy paid into hand staff
thanking you
One of our Client has valued the inventory @ market Value. I have made a reservation in my Audit Report. They have clarified that the goods so valued are agreed to be sold at such price. Is the clients answer justifiable?
I m a petty contractor in construction sector. whenever RA bill is raised, the principal contractor (under whom I am contracting, the employer) is deducting @ 6% from the billed amount. the break-up is :-
TDS 1% - as I have the PAN
EPF 2.5%
Retention Money 2.5 % to be released at the year end.
(1+2.5+2.5 = 6)
Any one please help me clarify that under what Act or Rule the principal contractor is authorised to deduct 2.5% towards EPF. Please.
Regards
PC Patra
N & P enters into partnership on 1/1/02 without agreement .N died on 31/9/02
Amt from cash sales deposited into bank after retains sum as follows
business exp:rs 50- pr week
personal exp -N 5000.P-6000
Paid into bank
capital N 25000.P 20000
Collection from credit customer 27734
balance of cash sale 35000.
Payment from bank
to suppler 45540
free hold permis 32000
furniture (1/7/02) 8000
s exp 2000
Additional info:-
GP-20% during year
cash discount allowed 2% and received 1%
goods return to suppler 1000 and by customer 900
bad debt written off 800
on 31/12/02 36000 owing to suppler nd 5500 due from customer
On tht day agreement b/w P nd Ns executive is :
a. Trading result aftr desperation on Furniture 10%pa should be presumed have been earned evenly for whole year
b. No provision for discount
c . Goodwill ignored
d. as from 30.9.02 a interest of 10%pa in lieu of profit is to be allowed t Ns executive on amount due to him ..
Prepare trading nd P&L and balance sheet 31/12/02
Dear Sirs,
According to Section 10AA of IT Act, a unit in SEZ can avail exemption from 6th year only if it has transferred an amount equal to exemption claimed i.e 50% of profit.Such reserve can be utilised only to acquire machinery or for the purpose of business until such machinery is acquired.
My doubt is what are the entries to be passed in the books when such reserve is utilised to buy the machinery.
Sir
Limitation of Central Debit note and Local Debit Notes
Regrads
ranjani pandey
hii
if any exporter is entitled to depb license when should recognition in books be made whether on cash basis or accrual basis????
Live class on PF & ESI Enrollment & Returns Filing(with recording)
As-26